If your prices are always low in the hope you’ll attract masses of buyers you lose out because not everybody likes such priced products because they think they’re not worth much. Besides which you might end up selling some of your most valuable information and products too cheaply. If your prices are always high end, you miss out on attracting people who might buy from you at some later point, and would buy cheaper products at present.
A mix allows you to cover both areas more effectively.
It also allows you to structure your pricing and products in sales funnels and campaigns rather than trying to sell one product at a time. Variety of presentation keeps the attention of prospects and customers. Sometimes you can reduce products considerably, at other times you can demand higher prices for more value or exclusivity. However, you need to cover the basics of aiming for cash flow that will keep things going, and enabling customers to get more and more value from you if they want it.
Basic pricing funnel
I’m making up these numbers – you, of course, will have your own pattern of pricing relative to your products and business.
Subscribers should already have seen some of your free content, including your free gift when they joined your list. You then want to move them into your sales funnel after developing more trust. You offer them your entry product to the sales funnel. A good way to ensure cash flow is to have this product as a monthly paying one, such as a membership or newsletter. Let’s say this is $47. Then you can offer a higher priced product at, say, $97. Now you can offer a higher priced membership or a home study course, or coaching if this is the end of the funnel. These could be $197 and upwards. Or you might have 1-on-1 coaching at $497 a month.
In other words, don’t just price randomly. Try different prices and see what pattern works best for you in your niche. Test until you have a funnel which works the most efficiently, and you can then leave it to operate automatically, at least to some extent.
Maintain your prices as high as you can
Some people start off with an unusual or very valuable product which they can sell at a high price. As it becomes more known, less buyers are interested, so the price is dropped. And then again when it’s well known in the market. Then, they might have it at a quite a low price.
You want to avoid this by maintaining its value to customers in some way. You could start off with an upsell from it. You could develop it, adding extra information to it.
Or keep the price higher by packaging it with other products so it seems a no-brainer to get it while its available in this form. Have customers expect that you’ll maintain value in some way, and expect that you won’t always drop prices, unless you’re doing it for a specific reason. For example, if you reduce it for a certain period by 50%, you can then offer an upsell and lead into another sales funnel.
Repeat payment products and pricing
An example of this is a membership of some kind. The freemium model is where you have a free level to the membership to attract people to join. Then, there is at least one more level offering greater value or more products. Another version is to offer a once-only or lifetime payment to an updated membership or use of a service. You can then make further offers to them as they are on your list, and you’ve gained their trust because of the value of the membership as a lifetime member.
The point is to have a pricing strategy which is most effective for your business. Study your market and see what works best in it – and how much you can change things to gain an advantage.